Summit Notebook

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Video – Luxury retail to take permanent hit

June 8, 2009

Unlike other economic downturns luxury retailers are also taking a hit along with the trest of the industry.

Luxury retail consultant and president of Unity Marketing, Pam Danziger, says retailers have to be willing to make tough choices and clearly align themselves with the needs of the customer without just paying lip service.

Speaker: Pam Danziger President Unity Marketing Presenter: Jeanne Yurman New York

Comments

I agree with Pam Danzinger’s comments regarding the changing luxury market.

To elaborate a bit further on her point as to how the market may change after the recession is over, it is important to note that purchasing power is now influenced by a new generation. Gen X/Y affluent consumers have a different value system. Words such as “sustainable”, “enduring”, “value”, “social responsibility” will be integrated into the new language of marketing to what will become the modern luxury movement.

Posted by Paula Peterson | Report as abusive
 

Luxury, like beauty, is in the eye of the beholder.

This is clearly demonstrated in a 2008 survey of the affluent by The American Affluence Research Center that revealed the great diversity in how consumers define luxury by price points and brands for 37 different products.

Given this ambiguity surrounding the definition of the word “luxury”, I’m not sure how anyone can accurately describe the current luxury market much less make predictions of how the luxury consumer will behave in the future.

 

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